H & C News is pleased to introduce a series of articles authored by experts from Buell Consulting Group on the subject of Managing Provincial Hotels Profitably.
Recent publicity on the acquisition of hotel groups such as Principal Hayley has distracted attention away from this fundamental issue. Provincial hotels operate in an environment that continues to be ‘challenging’: the economy struggles on without sign of a significant upturn, and the already crowded market becomes ever more competitive as Premier Inn is joined by more budget hotel groups.
In this first (of four) articles in the series, Peter Hancock, Associate (Operations & Event Management) offers insights on four areas that he sees as priorities at the present time.
- 1. When in doubt, use an expert!
A lot of the smaller hotels are managed by their owners who may be really good at several things such as housekeeping, book-keeping, stock control, welcoming guests, creating beautiful rooms, managing staff, cooking, or perhaps marketing.
But nobody can be great at everything, so my advice to anyone running a small hotel and who lacks skills in specific areas is to buy them in: get an expert, even if only on a temporary basis.
A typical area of need might be revenue management, which is a science in itself and can make the difference between turning a profit or working your socks off for nothing. The success of a hotel should not be measured in terms of occupancy but by the money it actually makes.
- 2. Don’t get left behind – get online!
Whether provincial or not, all hotels need to be easily bookable online to compete these days.
A hotel’s web site should obviously look the part but, even more importantly, it should allow customers to view the various room types and their prices and be able to make a confirmed booking quickly and easily. With the number of hotel reservations made using a mobile device overtaking those made on a PC, it is vital that your site is mobile friendly too.
- 3. When setting your rates, don’t just look locally!
When setting rates it seems that many hotels are influenced by the rates their local competitors are charging. This may be sensible if most of your business is local in origin, for example if a big company is booking rooms for its staff in the area, but in the case of leisure guests your competition could be almost anywhere.
At Pride of Britain we get calls from people looking to stay at a certain level of hotel with, say, a spa and a four poster bed. When presented with a choice they could book somewhere in Sussex, Bedfordshire or Gloucestershire. The location is important in terms of the journey time from home but that could be in any compass direction.
Notice the rates charged by actual competitors who offer a similar experience, not the cheaper alternatives on your doorstep.
- 4. Show where you stand!
Positioning is key to hotels that are not part of a well-known chain, so independent hotels use many devices to show the world how good they are in relation to the rest.
A rating from the AA or VisitEngland is one such device.
Another device is membership of an appropriate marketing consortium. For the most luxurious hotels there are three main players in the UK: Relais & Chateaux, Small Luxury Hotels of the World (SLH) and Pride of Britain. Members of any of these might also be affiliated to the Mr & Mrs Smith brand, Johansens or Bestloved Hotels.
Covering the mid-market are Best Western and Classic British Hotels, both of which claim a high return on investment. And, of course, for the reputation of your kitchen nothing beats Michelin stars…apart from lots of happy customers!
Future articles in this series
Over the coming weeks, H & C News will be publishing further articles on Managing Provincial Hotels Profitably, presenting the insights and guidance of Buell experts: Jill Chalmers (Associate, Sales & Marketing); Peter O’Meara (Associate, Operations); and Stephan Riegel (Associate, Operations)
About Peter Hancock
Fellow of the Academy of Food & Wine Service, former Group Publishing Director of Johansens Ltd, and Chief Executive of Pride of Britain Hotels, a consortium of 45 privately owned, independent luxury hotels and the official partner to the National Trust.
Previously, Peter specialised in hotel and restaurant management and spent 10 years in publishing, producing a series of popular hotel guides. Peter is a professional after-dinner speaker as well as a regular columnist for Caterer & Hotelkeeper and Hotel Owner magazines.
About Buell Consulting Group
Buell Consulting Group provides business consultancy services to business owners and operators across the Hospitality and Leisure sectors.
The Group is defined by its unique coalition of Business Associates and Business Partners and headed up by its Board of Directors:
Jeremy Logie OBE – Chairman
Roddy Watt – CEO
Fergus Chambers – MD (Foodservice)
Michael Gottlieb – MD (Restaurants)
Jonathan Perrin – MD (Finance)
The Buell Business Associates are industry experts each with more than 15 years’ hands-on experience in their field of expertise, and the Business Partners are top quality advisory or B2B service providers, each endorsed by the Buell Board.
The portfolio of services provides a comprehensive response to any requirement operating businesses or investors may have and specifically covers Operations, Support Services such as Sales & Marketing and HR, and Legal and Professional. Also offered is a range of bespoke products including Business Strategic Review, Non Executive Directors, and Talent Research and Acquisition
Buell Consulting Group essentially provides a multi-layered, one-stop resource for businesses whether they require expertise in one area or many.
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